Tesco Bank launches ‘lowest-ever’ tracker mortgage

Tesco Bank has launched its lowest-ever tracker rate mortgage and reduced rates on a selection of its 2, 3 and 5 year fixes.

The new rates include:

0.98% for the 60% LTV 2 year tracker with £1,495 product fee

1.92% for the 60% LTV fixed for 5 years with no product fee

2.12% for the 75% LTV fixed for 5 years with no product fee

Tesco Bank managing director David McCreadie says: “We are pleased to introduce our new reduced rates on a selection of our 2, 3, 5 year and tracker mortgage products to help customers buy or remortgage their home.

“Alongside our competitive rates, we also offer customers the unique added benefit of collecting Clubcard points on their mortgage repayments.”

Tesco Bank Mortgage customers can collect one Clubcard point for every £4 on their monthly repayments.

Customers can make regular or lump sum overpayments of up to 20 per cent of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge. Tesco Bank remortgage products include free valuation and free conveyancing.

The following new mortgage products are available through Tesco Bank and Tesco Mortgage Intermediaries:

Product Max LTV House Purchase (HP) or Re-mortgage (RM) Rate Product Fee APR
2 year fixed until 31/07/2019 75%

HP

 

1.24%**

 

£995

 

3.5%

3 year fixed until

31/07/2020

60%

60%

75%

75%

80%

RM

RM

HP

RM

RM

1.70%

1.90%

2.14%

2.09%

2.24%

£995

£0

£0

£0

£0

3.4%

3.4%

3.5%

3.5%

3.3%

5 year fixed until 31/07/2022

60%

60%

75%

80%

RM

RM

RM

RM

1.82%

1.92%

2.12%

2.24%

£995

£0

£0

£0

3.2%

3.2%

3.2%

3.3%

2 year tracker rate until 31/07/2019

60%

75%

80%

HP

HP

HP

0.98%

1.50%

1.60%

£1,495

£995

£995

3.5%

3.6%

3.6%

All products will move onto the Tesco Bank Standard Variable Rate (currently 3.89 per cent) at the end of the initial fixed rate period. Early Repayment Charges may apply during the initial fixed rate period.